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  The ILCC Legal Division

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TPP-16:
Deposits on Bottles and Barrels

I. Purpose

This policy establishes guidelines as to how much and when beer manufacturers (“brewers”) and distributors must charge for barrel deposits.

II. Policy

It is the policy of the Illinois Liquor Control Commission (ILCC) that a brewer or distributor must treat all retail accounts the same when charging for barrel deposits.

III. Background

235 ILCS 5/6-5 provides the requirements for the deposits on bottles and barrels for beer.

IV. Procedure

A. Bottles And Cases

  1. Retailer
    1. Unless the purchase price expressly includes a charge for the bottles and cases, the retailer must pay the distributor a cash deposit.
    2. The cash deposit must be paid on or before the delivery of such beer.
    3. The retailer must pay a deposit amount not less than that charged a distributor by the brewer. However, in no instance shall this deposit be less than the following: i) 50 cents for each case of beer in pint or smaller bottles, and ii) 60 cents for each case of beer in quart or half-gallon bottles.
    4. The deposit shall be credited or refunded to the retailer upon return of the bottles or cases.
  2. Distributor
    1. Unless the purchase price expressly includes a charge for the bottles and cases, the distributor must pay the brewer a cash deposit.
    2. A distributor has fifteen (15) days (Sundays and holidays excepted) after delivery to pay the cash deposit for the bottles and cases of beer.
    3. The distributor must pay a deposit amount not less than the following: i) 50 cents for each case of beer in pint or smaller bottles, and ii) 60 cents for each case of beer in quart or half-gallon bottles.
    4. The deposit shall be credited or refunded to the distributor upon return of the bottles and cases.

B. Barrels

There is no requirement of a deposit charge for barrels. However, if one distributor or retailer is charged, then all must be charged.

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